ATRenew's Strategic Positioning in the Pre-Owned Smartphone Market: JD Partnership and iPhone 17 Catalyze Trade-In Demand and Stock Performance
The pre-owned electronics market in China is undergoing a seismic shift, driven by a confluence of strategic partnerships and product innovation. ATRenewRERE-- (RERE), a leader in the circular economy for consumer electronics, has positioned itself at the forefront of this transformation through its renewed collaboration with JDJD--.com, one of China's largest e-commerce platforms. This partnership, extended through December 31, 2027, and the recent launch of Apple's iPhone 17 are creating a virtuous cycle of trade-in demand, operational efficiency, and stock performance that could redefine the sector.
Strategic Synergy with JD.com: A Foundation for Growth
ATRenew's renewed business cooperation agreement with JD.com, effective June 1, 2024, underscores a strategic alignment to dominate the second-hand electronics market. The partnership leverages JD.com's unparalleled logistics network and user traffic, combined with ATRenew's expertise in pre-owned device transactions and recycling. By integrating JD's technology support and fulfillment capabilities, ATRenew has significantly enhanced its supply chain efficiency, reducing delivery times and expanding its service footprint[1].
A key milestone in this collaboration was the launch of 25 self-operated and 28 franchised stores in May 2025, strategically located in key Chinese cities[5]. These physical touchpoints not only strengthen ATRenew's brand visibility but also streamline trade-in processes for consumers. The “Old-for-new Service” model, where JD handles online sales and delivery while ATRenew manages on-site trade-ins, has proven particularly effective in reducing friction for customers[2]. This hybrid approach aligns with national subsidy policies aimed at stimulating consumption, further boosting ATRenew's market share[4].
iPhone 17 Launch: A Catalyst for Trade-In Demand
The September 2025 launch of the iPhone 17 has amplified demand for trade-in services, directly benefiting ATRenew's operations. According to a report by Gizmogrind, trade-in volumes for iPhones surged to four times the same period in 2024 within hours of the iPhone 17's release[1]. This surge was preceded by record-breaking pre-sales on JD.com, where iPhone 17 units sold out within minutes of the pre-order window opening[1].
The iPhone 17's advanced features—such as the A19 chip, 48MP triple-lens camera system, and 256GB base storage—have rendered older models like the iPhone 15 and 14 less competitive. As a result, trade-in values for these older devices have dropped by up to 24.1%, creating a strong incentive for consumers to upgrade[3]. ATRenew, with its extensive network of stores and JD-backed logistics, is uniquely positioned to capitalize on this shift. The company's Q1 2025 financial results, which showed a 27.5% year-over-year revenue increase to RMB 4.65 billion, highlight the direct correlation between product launches and trade-in activity[4].
Financial and Stock Performance: A Test of Resilience
The iPhone 17's market impact has translated into robust financial performance for ATRenew. In Q2 2025, the company reported revenue of 4.99 billion CNY, a 32.16% year-over-year increase, alongside a 777.75% surge in net income to 72.34 million CNY[6]. These figures underscore ATRenew's ability to convert short-term market dynamics into long-term profitability.
The stock market has responded favorably, with ATRenew's shares rising by 98.18% over the past 52 weeks[7]. This outperformance is partly attributed to investor confidence in the company's strategic positioning. As noted by analysts, ATRenew's forward PE ratio of 9.55 suggests undervaluation relative to its growth trajectory[7]. The recent $50 million share repurchase program further signals management's commitment to shareholder value[6].
Market Dynamics and Competitive Landscape
While the iPhone 17's launch has created a temporary dip in older models' trade-in values, ATRenew's partnership with JD.com provides a buffer against volatility. JD's logistics arm reported an 11% year-on-year revenue growth in Q1 2025, reflecting the scalability of their integrated supply chain[4]. This resilience is critical in a market where competitors like Google and Samsung have also introduced aggressive trade-in incentives[3].
Analysts like Dan Ives argue that the iPhone 17's demand is underestimated, with potential to drive Apple's 2026 growth[4]. For ATRenew, this means sustained trade-in activity and a broader customer base seeking to leverage subsidies and recycling programs. The company's plan to expand to 5,000 stores by 2027[5] positions it to capture this demand, further solidifying its leadership in the circular economy.
Conclusion: A Win-Win for Investors and the Circular Economy
ATRenew's strategic partnership with JD.com and the iPhone 17's market impact have created a powerful flywheel effect: enhanced logistics drive trade-in convenience, product innovation fuels demand, and financial performance validates the model. For investors, the combination of operational scalability, market timing, and policy tailwinds makes ATRenew a compelling play in the pre-owned electronics sector. As the circular economy gains traction, ATRenew's ability to adapt to technological shifts—like the iPhone 17's release—will likely determine its long-term success.
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